Money Matters: China And Arab Sovereign Wealth Troubles Our Rulers Again

Elaine Meinel Supkis

In Europe, they are talking about 'Sovereign Wealth'. Seems they, the Chinese and the Arab oil sheikhs know what this thing is unlike America's Treasury and our army of economics professors. The IMF worries about 'black boxes' which I assume are closely related to 'black pools' which are connected with all those organizations that use the word 'black' in their names or name themselves after things in hell. The take over of public companies by privateers continues as they sail onwards, all of these transactions pile on more debt more rapidly. The SEC investigates insider trading (hahaha). And Japan worries someone might scale their citadel walls and buy Japanese corporations.

From the Observer UK:

Protectionism is making a comeback. At least, that is the fear of many influential figures - from senior officials at finance ministries to politicians and independent economists. These experts are, generally speaking, pointing their fingers from West to East, from the US and Europe to China, Russia and the Gulf, and they are being specific about the threat.

A new breed of global investment behemoths, the so-called 'sovereign wealth' funds (SWFs) - effectively state-controlled investment funds bankrolled by huge foreign exchange surpluses or petrodollars - want to buy up, among other things, western companies. This could provoke protectionist calls from populist politicians.

Just the other day, I covered the amusing story about our Treasury officials and Reseve officers being puzzled about what 'sovereign wealth' really was. I got very sarcastic and suggested they look into the antique institution called 'FOREX reserves.' I was very annoyed about all this because these are the same liars and traitors who tell us debts don't matter, they are joined by a host of top economics professors like the fools I wrote about at Harvard, telling us we can run up debts to 100% (yikes in hell!) of our GNP and have no worries or problems. We will be super rich!

Well, these guys also claim leveraging everything in sight by dropping $533 trillion in debts on it all is a good thing, too, because it makes us (read: the guys snagging 10% off of these deals) very rich. Indeed, there has been a huge push on the part of the non-sovereign wealth nations to convince Japan, China, Russia and the oil pumping nations, it is bad to build up huge FOREX reserves. Indeed, our clever, lying, conniving little weasels in the economic pundit industry have been shrieking that big FOREX reserves are no good and foolish, they claim at Harvard, 'Why would anyone do this?'

Well, if the smart Chinese and the even smarter Japanese are doing this with great frevor and if both of them have huge trade surpluses with the US, I would suggest they are smart and we are stupid. Since many other nations are now doing this, it means we are in deep trouble because they are all improving their financial power as well as political power doing this so it obviously is a good thing...for them.

China's announcement that they were now going to cease simply banking these funds and are now launching into a global hunt for wealth and power by privatizing and taking over big corporate entites along with the help (needed for political reasons, they need traitors to work along with them) of all those dark named hedge and equity funds. This scares the West who imagine only they can use wealth in this fashion.

Last week, for example, the German government was reported to be setting up an agency to examine acquisitions by these investment colossi, concerned that they could pose a threat to national security, particularly if they bought a major bank. A day later, the IMF joined calls for greater scrutiny of what it calls 'black boxes' through which increasing financial flows are funnelled.

The Japanese already know about all this. They briefly toyed with the idea of strengthening their dead yen but then gave that up and chose the protectionist route of fighting off all foreign penetrations at all. The world's #2 economic power not only doesn't follow the same rules as everyone else, this also hinges on them locking out all competition and take overs.

But Europe and America have conned themselves into the fiction of 'free trade' despite little popular political support. The collapse of the Doha rounds still resounds. The negotiators who are all New World Order conspiritors can't even hold meetings anywhere in the world outside of Doha because of popular riots and insurrections that greets them at every turn, rightfully so.

I laugh, hahaha, when I read the IMF's officers who are cruel hell hounds themselves, are puzzled by and worried about 'black boxes'. Well, who is it that preached 'privatization'? Why, the neo cons of America! And they infest our publishing houses, our media and our government. They created the black boxes and the black pools of money and they touted this as a fine thing and they spread the concept across the earth. Now they sit at the top of the International Monetary Fund and worry about how governments of all the nations we are in a deadly competition with are now using these concepts?

Good grief. All the red ink from lopsided world trade is now flowing not through the Bank of Japan but through the Bank of China and the Banks in the UAE and Dubai and...Doha, Quatar. This is why the conspiritors running world trade rules and regulations met there and not in say, Paris, Rome or London. They knew they would be pelted with filth and surging crowds would try to rend them limb from limb and hang them from lamp posts! So they met at the place that is one of the three top places for all the world's red ink to flow into black pools and black boxes!

All of this matters a lot. I had a very depressing tour of economic blogs run by professors and investors last night. Not one of them had talked about Japan in the last two weeks or longer. Some were still fretting about the value of the yuan. Clue: its doing just fine, thank you. Others were watching stocks, worried about gold prices or wondering when the liars in our government and media would notice the housing collapse is getting much worse much faster than 'expected'. But none of them talked about the international forces that are now rising rapidly to hurricane force winds of change.

From the Nikkei:

ANALYSIS: Cross-Shareholding Reviving As Takeover Fears Grow

TOKYO (Nikkei)--The practice of cross-shareholding is slowly staging a comeback among Japanese companies. While they do so with different motives from what was seen in the past, some market participants are concerned about the inefficient use of corporate capital.

This doesn't puzzle me. Americans are content to think only locally and we still imagine we are outside the global systems even as we are the heart of it and we are bleeding red ink all over the planet, destabilizing the entire world which is seeing rapid rise in wealth due to this TRANSFER OF WEALTH from our sovereign nation to other sovereign nations that are using this as a tool to take over our entire economic system in a very insidious and dangerous way.

The Japanese love doing this to us but hate anyone turning this on them. And they are very exposed to all this so they are playing turtle and still talking the talk but are walking backwards from free trade as fast as they can. In other words, when they meet with our stupid traitors, they lie. And our traitors should have the wit and brains to see through these lies but they can't and won't. And in geopolitical terms, we have put all our diplomatic eggs in the Japanese basket and we think Japan will protect us from China taking over our nation's finances but this is insane because the red ink we produce is too great for Japan to sop up, I pointed this out long ago, and both Japan and the US need China's labor and China's wealth to keep our economic machines running.

There will be no money at all for any mortgages in our future if we keep on this present track. Or, the money available will come from the Arabs, Chinese and Russians! And this is very dangerous because we are two-timing the Arabs by promising to help the Palestinians and stop Israeli aggressions and thefts only we don't. So they have switched gears.

From the Observer:

As these fears were pouring out, China announced that its state-run foreign exchange corporation would raise £200bn via a bond issue. Even before this capitalisation, China had been active on the international stage, buying a $3bn stake in private equity group Blackstone earlier this year, making investments in Africa and unveiling offers for US companies such as oil giant Unocal.

Meanwhile, officials in Dubai, which operates a hyperactive global investment fund as part of the Maktoum family-controlled Dubai World group - which bought P&O last year -indicated that it was prepared to collaborate with China on future projects and could get involved in asset swaps.

On my Diplomacy page, I talked about all this in the past. Hu has been most busy cultivating all parties in the Middle East. Unlike the US, he doesn't give a dragon's scale for Jerusalem. He doesn't care who lives there or what gods they worship. He worships power and wealth, he is a dragon, after all! And so he flapped his wings and flew off to all the Arab powers including Saudi Arabia for secret negotiations and this week we are beginning to see what this is all about: creating dark pools and black boxes. This is so they can hide what they are doing.

China tried doing open business with the US and Europe but both refused to let them openly buy out oil companies or car manufacturers so now they are going the other route. The West refused to sell them high level computers so they have patiently lured this industry into China and trained their people over here at the technical collleges and now are busy building their own systems and of course, they will definitely use these dark, black funds to buy into American, Japanese and European corporations that interest them for strategic reasons.

And they will continue to take over our military/industrial complex. The Israelis have taken a lot of the US foreign aid we pour into that nation alone, and used it to buy into our military/industrial complex and they are scared that the Arabs will now trump them and buy much more and end up in control of these things andn of course, the Arab/Chinese secret accords to do exactly that are now being announced here on my news analysis service: it will happen. Fast.

For they are racing against time. The forces of jihad, the chaos under the surface, is growing stronger. The plight of the Palestinians is in a critical stage. Just this week on the Hamas channel for children, they had their Mickey Mouse character beaten to death by actors dressed as Israeli Jews. This was noted by all the Muslims watching this tragedy. My heart breaks for the children of Palestine. They are traumatized by this religious war cooking right under their feet and they are the Human Sacrifices the world rulers play with at the Bohemian Grove every summer. The burning of Care on the pyre is them: they are the ones who are suffering along with the children of Afghanistan and Iraq. And all things are tied together and form 'history' and we are in historic times: the future will be quite different from today.

From Bloomberg:

The U.S. regulatory crackdown on insider trading is missing widespread abuses in the $4 trillion options industry, undermining everyone from Goldman Sachs Group Inc., the world's biggest securities firm, to Citadel Investment Group LLC, the $14 billion hedge fund manager.

Interactive Brokers Group Inc., which handles 20 percent of all U.S. options trades, lost as much as $25 million in the first quarter to investors who may have violated laws by using non-public information to trade. Market makers PEAK6 LLC and AGS Specialists LLC say insider trading is costing them at least 10 percent of annual earnings.

``Big deals today are pretty much known in advance and the options market reflects that,'' said Matthew Hulsizer, the co- founder of closely held PEAK6 in Chicago. ``When people come in and cheat, there's very little we can do as a market maker to avoid it. Things have gotten worse, not better.''

I caught a fish the other day. A reporter for Market Watch goofed and let out of the bag, the fact that a hedge fund hell hound was going to be shot dead after the markets closed. I reported on all this early in the day and then watched the stocks for this dead dog be bought up by investors who were no in the know and who don't read my insignificant news service.

When it died at sunset, I demanded an investigation. So far, there is none. But I like to say over and over again, ALL TRADES BY THE BIG GUYS IS INSIDER TRADING! They gossip with each other. They spy on each other. They know each other. When I used to be involved in all this long ago, I knew all one had to do was go around lower Manhattan and chat it up with everyone, something I loved doing. On top of this, as a member of the Ruling Elites going back 1,000 years, I know that we all talk to each other and lie to each other and of course, scheme against each other. And if someone wants to hurt someone else, they leak interesting information in the right direction, for example.

For example, I knew the owners of a Greek shipping company. I worked for a top German company. When another German company formulated a merger with the Greek company, the owner of the German company I was working for warned me that the guy running the German shipping company was a crummy guy who cheated people and he knew him since the Universität days. So I passed on the warning which was ignored. The Greek company was sucked dry of all finances as the Germans took it and moved it to their side of the consortium and then they kicked the Greeks to the curb.

Now, knowing this sort of archane information gives a huge boost to one's ability to predict what will happen next. In this case, if I held stock in Hellenic Lines, I would have dumped it. But the SEC's definition of 'insider trading' is much narrower. Bush Jr did this when his Haarkon Drilling business went bust. Only the people he 'cheated' were not cheated at all, they knew exactly what they were buying at the time: the son of the president at that time.

And this is the real insider buying which shows us how our ruling elites are now traitors. They have made secret deals and sold themselves to people holding sovereign wealth.

From the Wall Steet Journal:

Investors in two Bear Stearns hedge funds will have to wait until as late as July 16 to learn how much money they have lost.

The Wall Street firm has had difficulty calculating the funds' fair value, apparently because many of the mortgage-related securities they hold are thinly traded and the market for them has been volatile.

I bet they are using pencils and paper and a high school math major to figure out these losses. Heh. They don't want to reveal them until they have all their secret dark pool money and black boxes filled up and hidden from view because already they are being hammered by anxious and fearful investors who are all out of the loop, in the dark and outsiders. This is why, incidentally, all the major companies and businesses pay a fortune to have offices in Manhattan, London and Paris: this is the only way to get all the juicy gossip, the inside information! I was once part of that network! Information is passed hand to hand at the opera at Lincoln Center or London or the Paris Opera House. Who sits with whom is noted and registered.

Once I caused a stir in the opera when a powerful industrialist gave me his tickets to a Wagner opera and I got to sit in his box which was the most expensive one in the house! People stared as I happily trotted into the box. They were wondering what my connection was with him (it was very personal and intense and very CIA).

The culture of the elites is very connected with the art world and their need for gossip and inside knowledge. Attending auctions of fine art, for example, is all part of this. Just like peacocks displaying their feathers, they strut about. Some try to buy up stuff like Enron's executives did, in an effort to fool people into thinking they had sovereign wealth and were not deep in debt.

This is why I reported the astonishing news that most art auctions now involve people using LOANS to bid up stuff there! This outraged me because it means they are all frauds pretending to be rich! One enterprising youth actually did this, he pretended to be a rich man by buying art in Manhattan and then conned people into giving him money for a ficticious company! He was arrested for fraud, of course.

From LA Times:

Federal regulators are examining the records of Brookstreet Securities, an Irvine brokerage being liquidated after sustaining heavy losses on mortgage-backed investments, the firm's founder said Friday.

Stanley C. Brooks, who started Brookstreet 17 years ago, said he fired 80 employees Friday, leaving a staff of about 15 to shut down operations over the coming months. Brookstreet last week severed ties with more than 600 independent brokers nationwide who had represented the firm.

Now the brokerages are going under. I was alarmed to read that many buyers of stocks weren't just fools putting their homes into hock in order to buy stocks, brokers were extending loans too. And when the margin calls go against the bets, not only do the players go bankrupt, the guys running the game go broke, too. The money vanishes.

And this is because money is magic. It has force only so long as everyone plays the game and no one breaks the spell but when one person falls, it can all fall rapidly. It is truly a long maze of dominoes and when they begin to clank against each other, they can all go down.

The nations with sovereign wealth can lose it all in this disappearing money event but they are better off, even then, than the nations deep in debt. Germany coped with all this by creating first, hyper inflation then declaring bankruptcy and then, in the end, rushing outwards to loot the world. Looting is the most primitive response to financial woes. Stealing stuff is the #1 way to gain wealth. Even today. Psychologically speaking, it relieves the anxiety when one becomes violent and this is true with nations. After 9/11, the American people needed to become violent, for example. Too bad, this made things much worse for us but then again, the elites running America only wanted to make lots of money off of this rage and so they did. Hand over fist. They didn't care if this failed as a military adventure.

From Market Watch:

Reddy Ice Holdings Inc. has agreed to be acquired by GSO Capital Partners in a transaction with a total value of about $1.1 billion, the manufacturer and distributor of packaged ice said Monday.

In addition, Dallas-based Reddy Ice (FRZ :28.52, +0.39, +1.4% ) said it's revising lower its financial forecast for 2007, citing "sustained, abnormally adverse weather" in Texas and Oklahoma.
Terms of the deal with leveraged-finance specialists GSO Capital call for stockholders of Reddy Ice to receive $31.25 in cash for each common share, a premium of nearly 10% over the shares' June 29 closing price.

I included this only to show that the flood of red ink which is growing, not shrinking, is causing many formerly open, in the stock market, companies to go 'private' again. The plan is very simple: the hellish beasts privatizing everything want us to only buy THEM. We can buy their stocks which they control and they then get the wealth direct instead of via dividend payments or selling off stocks they buy. This is DIRECT CONTROL and DIRECT FEED BACK of wealth to them! They become the stock market itself. This is their plan. Only it is also China and the Arab nation's plans! And this is why suddenly our ruling elites at the International Monetary Fund are suddenly running around in hysteria.

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